Texas authorities are cracking down on crypto fraud using AI

authorities in Texas They issue an emergency cease and desist order against an AI crypto scam claimloll He was endorsed by Elon Musk, Changping Zhao, and Vitalik Buterin.

Since last month, several cryptocurrency scams and scams have surfaced. Bad actors use artificial intelligence (AI) noise to defraud investors out of money.

TruthGPT – AI Crypto Scam

The Texas SSB has launched an investigation into the TruthGPT Coin AI crypto scam.

According to Texas SSB press releaseTruthGPT coin developers Horatiu Charlie Caragaceanu, The Shark of Wall Street, and have claimed that the coin will yield a capital value of 10,000 times.

The team claims that their artificial intelligence model, Elon Musk AI, can analyze cryptocurrencies and predict future prices. Ironically, the team announced that the AI ​​model can also identify fraudulent investment projects.

Furthermore, Texas SSB says the project has created the false appearance that popular figures like Elon Musk, Changpeng Zhao, and Vitalik Buterin are part of the ecosystem.

Elon Musk plans to launch an AI startup TruthGPT to compete with OpenAI’s ChatGPT.

Regulators have issued an emergency cease and desist order against the TruthGPT coin project, which is nothing but Musk’s TruthGPT hype.

Because of cease and desist orders, the project will have to immediately stop engaging in certain activities deemed illegal.

Breeding ground for scams

Securities Commissioner Travis Ailes said:

Artificial intelligence buzzes. Widely covered by traditional media, she is trending in social media and has the potential to influence many different industries. Bad actors continue their attempts to capitalize on this widespread public interest.

They devise schemes that create the appearance that they’ve developed cutting edge AI platforms – but rather than being rooted in AI, the offers are oftentimes nothing more than scams.

Last month, BeInCrypto reported that a single wallet was behind 114 coin memes involved in rug sweepstakes. Some of the meme coins have captured the AI ​​hype and have been named Bad AI Doge, ScaryAI, and TechGPTETH.

With new technology coming to the fore, it needs to be regulated. Hence, with the advent of artificial intelligence, global regulators are looking into the technology with the aim of regulating it.

Late last month, the European Union proposed a bill to regulate generative AI tools like ChatGPT and Midjourney.

Now, the Financial Times mentioned The UK’s competition watchdog is closely reviewing the AI ​​market and developing the models behind popular tools like ChatGPT.

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